🏃 Grab this Black Friday offer early. Get up to 55% off InvestingPro now!CLAIM SALE

On-Chain Data Reveals Volatility Is Likely on BTC’s Horizon

Published 22/05/2023, 11:30
© Reuters.  On-Chain Data Reveals Volatility Is Likely on BTC’s Horizon

  • A new Tweet by Glassnode suggested that there could be some volatility in store for BTC’s price.
  • The analysis platform pointed out that the drawdowns experienced across BTC’s recent upswing in price action are smaller than in previous years.
  • At press time, BTC was trading hands at $26,835.02, following a 0.90% price decrease.

The on-chain analysis platform, Glassnode, recently took to Twitter to share some new insights about the crypto market leader Bitcoin (BTC), and explained that some high volatility is likely on the horizon for the crypto. This conclusion was drawn based on BTC’s price movements over the past week.

BTC 7-day price high and low (Source: Twitter)

According to the post, the 7-day price range that BTC has been consolidating within is the tightest seen in the past three years. Glassnode added that this consolidation for BTC can be compared to those from January of 2023 and July of 2020.

The analysis platform added that it is worth noting that these consolidation phases for BTC preceded large price moves. This may lead traders to assume that there could be some volatility in the cards for BTC in the near future.

Although things might get rocky for BTC, Glassnode added in a separate Tweet that the magnitude of drawdowns experienced across BTC’s recent upswing in price action remains marginal when compared to other cycles. The bull peak drawdown for 2011-2013 stood at -71.2%.

Bitcoin bull market correction drawdowns (Source: Twitter)

In addition to this, the 2015-2017 and the 2018-2021 bull peak breakdowns stood at -36% and -62.6% respectively. To put this into perspective, the 2022+ bull peak breakdown stands at only -18.6%, according to Glassnode’s data.

Meanwhile, CoinMarketCap indicated that at press time, BTC was trading hands at $26,835.02 at press time. This followed a 0.90% price drop in BTC’s price over the past 24 hours. BTC was also down by more than 2% over the past week of trading.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

The post On-Chain Data Reveals Volatility Is Likely on BTC’s Horizon appeared first on Coin Edition.

Read more on Coin Edition

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.